Rep. Jehan Gordon-Booth

Filed: 5/11/2018





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2    AMENDMENT NO. ______. Amend Senate Bill 3527 by replacing
3everything after the enacting clause with the following:
4    "Section 5. The Illinois Income Tax Act is amended by
5changing Section 221 as follows:
6    (35 ILCS 5/221)
7    Sec. 221. Rehabilitation costs; qualified historic
8properties; River Edge Redevelopment Zone.
9    (a) For taxable years that begin beginning on or after
10January 1, 2012 and begin ending prior to January 1, 2018
11January 1, 2022, there shall be allowed a tax credit against
12the tax imposed by subsections (a) and (b) of Section 201 of
13this Act in an amount equal to 25% of qualified expenditures
14incurred by a qualified taxpayer during the taxable year in the
15restoration and preservation of a qualified historic structure
16located in a River Edge Redevelopment Zone pursuant to a



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1qualified rehabilitation plan, provided that the total amount
2of such expenditures (i) must equal $5,000 or more and (ii)
3must exceed 50% of the purchase price of the property.
4    (a-1) For taxable years that begin on or after January 1,
52018 and end prior to January 1, 2022, there shall be allowed a
6tax credit against the tax imposed by subsections (a) and (b)
7of Section 201 of this Act in an aggregate amount equal to 25%
8of qualified expenditures incurred by a qualified taxpayer in
9the restoration and preservation of a qualified historic
10structure located in a River Edge Redevelopment Zone pursuant
11to a qualified rehabilitation plan, provided that the total
12amount of such expenditures must (i) equal $5,000 or more and
13(ii) exceed the adjusted basis of the qualified historic
14structure on the first day the qualified rehabilitation plan
15begins. For any rehabilitation project, regardless of duration
16or number of phases, the project's compliance with the
17foregoing provisions (i) and (ii) shall be determined based on
18the aggregate amount of qualified expenditures for the entire
19project and may include expenditures incurred under subsection
20(a), this subsection, or both subsection (a) and this
21subsection. If the qualified rehabilitation plan spans
22multiple years, the aggregate credit for the entire project
23shall be allowed in the last taxable year, except for phased
24rehabilitation projects, which may receive credits upon
25completion of each phase. Before obtaining the first phased
26credit: (A) the total amount of such expenditures must meet the



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1requirements of provisions (i) and (ii) of this subsection; (B)
2the rehabilitated portion of the qualified historic structure
3must be placed in service; and (C) the requirements of
4subsection (b) must be met.
5    (b) To obtain a tax credit pursuant to this Section, the
6taxpayer must apply with the Department of Natural Resources
7Commerce and Economic Opportunity. The Department of Natural
8Resources Commerce and Economic Opportunity, in consultation
9with the Historic Preservation Agency, shall determine the
10amount of eligible rehabilitation costs and expenses within 45
11days of receipt of a complete application. The taxpayer must
12submit a certification of costs prepared by an independent
13certified public accountant that certifies (i) the project
14expenses, (ii) whether those expenses are qualified
15expenditures, and (iii) that the qualified expenditures exceed
16the adjusted basis of the qualified historic structure on the
17first day the qualified rehabilitation plan commenced. The
18Department of Natural Resources is authorized, but not
19required, to accept this certification of costs to determine
20the amount of qualified expenditures and the amount of the
21credit. The Department of Natural Resources shall provide
22guidance as to the minimum standards to be followed in the
23preparation of such certification. The Department of Natural
24Resources and the National Park Service Historic Preservation
25Agency shall determine whether the rehabilitation is
26consistent with the United States Secretary of the Interior's



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1Standards for Rehabilitation the standards of the Secretary of
2the United States Department of the Interior for
4    (b-1) Upon completion and review of the project and
5approval of the complete application, the Department of Natural
6Resources Commerce and Economic Opportunity shall issue a
7single certificate in the amount of the eligible credits equal
8to 25% of qualified expenditures incurred during the eligible
9taxable years, as defined in subsections (a) and (a-1),
10excepting any credits awarded under subsection (a) prior to the
11effective date of this amendatory Act of the 100th General
12Assembly and any phased credits issued prior to the eligible
13taxable year under subsection (a-1). At the time the
14certificate is issued, an issuance fee up to the maximum amount
15of 2% of the amount of the credits issued by the certificate
16may be collected from the applicant to administer the
17provisions of this Section. If collected, this issuance fee
18shall be deposited into the Historic Property Administrative
19Fund, a special fund created in the State treasury. Subject to
20appropriation, moneys in the Historic Property Administrative
21Fund shall be provided to the Department of Natural Resources
22as reimbursement evenly divided between the Department of
23Commerce and Economic Opportunity and the Historic
24Preservation Agency to reimburse the Department of Commerce and
25Economic Opportunity and the Historic Preservation Agency for
26the costs associated with administering this Section. The



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1taxpayer must attach the certificate to the tax return on which
2the credits are to be claimed. The Department of Commerce and
3Economic Opportunity may adopt rules to implement this Section.
4    (c) The taxpayer must attach the certificate to the tax
5return on which the credits are to be claimed. The tax credit
6under this Section may not reduce the taxpayer's liability to
7less than zero. If the amount of the credit exceeds the tax
8liability for the year, the excess credit may be carried
9forward and applied to the tax liability of the 5 taxable years
10following the excess credit year.
11    (c-1) Subject to appropriation, moneys in the Historic
12Property Administrative Fund shall be used, on a biennial basis
13beginning at the end of the second fiscal year after the
14effective date of this amendatory Act of the 100th General
15Assembly, to hire a qualified third party to prepare a biennial
16report to assess the overall economic impact to the State from
17the qualified rehabilitation projects under this Section
18completed in that year and in previous years. The overall
19economic impact shall include at least: (1) the direct and
20indirect or induced economic impacts of completed projects; (2)
21temporary, permanent, and construction jobs created; (3)
22sales, income, and property tax generation before, during
23construction, and after completion; and (4) indirect
24neighborhood impact after completion. The report shall be
25submitted to Governor and the General Assembly. The report to
26the General Assembly shall be filed with the Clerk of the House



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1of Representatives and the Secretary of the Senate in
2electronic form only, in the manner that the Clerk and the
3Secretary shall direct.
4    (c-2) The Department of Natural Resources may adopt rules
5to implement this Section in addition to the rules expressly
6authorized in this Section.
7    (d) As used in this Section, the following terms have the
8following meanings.
9    "Phased rehabilitation" means a project that is completed
10in phases as defined under Section 47 of the federal Internal
11Revenue Code and pursuant to National Park Service regulations
12at 36 C.F.R. 67.
13    "Placed in service" means the date when the property is
14placed in a condition or state of readiness and availability
15for a specifically assigned function as defined under Section
1647 of the federal Internal Revenue Code and federal Treasury
17Regulation Sections 1.46 and 1.48.
18    "Qualified expenditure" means all the costs and expenses
19defined as qualified rehabilitation expenditures under Section
2047 of the federal Internal Revenue Code that were incurred in
21connection with a qualified historic structure.
22    "Qualified historic structure" means a certified historic
23structure as defined under Section 47(c)(3) of the federal
24Internal Revenue Code.
25    "Qualified rehabilitation plan" means a project that is
26approved by the Department of Natural Resources and the



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1National Park Service Historic Preservation Agency as being
2consistent with the United States Secretary of the Interior's
3Standards for Rehabilitation standards in effect on the
4effective date of this amendatory Act of the 97th General
5Assembly for rehabilitation as adopted by the federal Secretary
6of the Interior.
7    "Qualified taxpayer" means the owner of the qualified
8historic structure or any other person who qualifies for the
9federal rehabilitation credit allowed by Section 47 of the
10federal Internal Revenue Code with respect to that qualified
11historic structure. Partners, shareholders of subchapter S
12corporations, and owners of limited liability companies (if the
13limited liability company is treated as a partnership for
14purposes of federal and State income taxation) are entitled to
15a credit under this Section to be determined in accordance with
16the determination of income and distributive share of income
17under Sections 702 and 703 and subchapter S of the Internal
18Revenue Code, provided that credits granted to a partnership, a
19limited liability company taxed as a partnership, or other
20multiple owners of property shall be passed through to the
21partners, members, or owners respectively on a pro rata basis
22or pursuant to an executed agreement among the partners,
23members, or owners documenting any alternate distribution
25(Source: P.A. 99-914, eff. 12-20-16; 100-236, eff. 8-18-17.)".